LAHORE: The purpose of the IMF program is to promote macro-economic stability in Pakistan. The Fiscal Policy and Monitory Policy should promote and further the same vision.
Resident Representative of International Monetary Fund (IMF) Esther Perez Ruiz stated this while speaking at the Lahore Chamber of Commerce and Industry on Tuesday. President LCCI Mian Nauman Kabir, Vice President Haris Ateeq and the LCCI Executive Committee Members were present.
Esther Perez Ruiz further said that the aim of the IMF programme is to bring a set of policies in Pakistan that can promote sustainable and inclusive policy growth. She said Pakistan’s Tax to GDP ratio is very low, the purpose of eliminating sales tax exemptions through the recent finance act is to reduce the complexity in the taxation system. She said that Pakistan should not only look to take measures related to tax but there are other ways to enhance the competitiveness of the economy.
The LCCI President Mian Nauman Kabir said that being the premier business support organization of the country, LCCI is quite sensitive about the impact of Pakistan’s ongoing 22nd IMF Programme on the national economy and particularly on the private sector growth. “Hopefully, we will witness the successful completion of this Programme as well just like the 21st Programme, ” he added.
He said that this meeting will give the IMF an opportunity to understand the perspective of the business community about the ongoing IMF programme. “Secondly, it gives us a chance of developing a better understanding of IMF policies and also know about the major success stories related to IMF Programmes adopted by other countries, ” he added.
He said there is a need to widen the tax base by bringing more people into the tax net rather than burdening the existing taxpayers. He said government has the data of all the industrial and commercial electricity connections which can be used to broaden the tax net.
Mian Nauman Kabir said that given the broad reach of IMF programmes, it is important to analyze the impact of these programmes for economic growth and other dimensions of economic performance.
LCCI Vice President Haris Ateeq endorsed the documentation of the economy.